Long Term Care Insurance

What are the different types  Long Term Care Insurance policies?

How do you know which one is right for you?

Let's examine...

What is Long Term Care Insurance?

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Are There Different Types of Long Term Care Insurance?

YES

Traditional 

Hybrid 

 and 

Traditional
Long Term Care Insurance

No Guaranteed Contract

No Guaranteed Contract 

means the insurance company can raise rates at any time and as many times as they see fit unless you have a paid up policy.

 

Your only option is to pay the new higher premium, reduce your benefits or cancel.

No Ownership / Use It or Lose It

This is similar to car or homeowners insurance. You hope you never need it and your premiums served the purpose of transferring the risk. 

 

There is no other value remaining in the policy, and you can't get your premiums back.

This policy usually does not allow for a Single Premium, so the best option for a Traditional LTC insurance policy is to pay over 10 years, which is also not typically offered. However, if you are able to obtain a limited pay policy such as 10 years of payments or (10 pay), once you've finished making payments, you have a guaranteed contract and the company cannot raise rates after that point.

Hybrid
Life & Long Term Care Insurance

Guaranteed Contract

A Guaranteed Contract 

means the insurance company is bound to pay the stated daily benefits for the stated period of time.

 

You will never get a rate increase, and you can pay in a single premium (all at once) or make monthly/annual payments for up to 25 years depending on your age and the company.

You Own The Policy 

You own and control the policy. It has cash value, so if you decide to cancel several years later, you can get your premiums back minus and benefits used.

Because it is also a life insurance policy, it has a death benefit equal to at least your premiums paid minus any distributions or benefits used. 

A common way to fund this policy is with a single premium (make one payment up front). It usually makes good financial sense to take an underperforming asset such as a maturing CD and using that asset to pay for the policy. Younger people (40s and 50s) can pay monthly or annually up to age 65 and spread out the premiums over those years without penalty. 

Hybrid
Annuity & Long Term Care Insurance

Guaranteed Contract

A Guaranteed Contract 

means the insurance company is bound to pay the stated daily benefits for the stated period of time.

 

You will never get a rate increase, and you can pay in a single premium (all at once) or make monthly/annual payments for up to 25 years depending on your age and the company.

You Own The Policy 

You own and control the policy. It has cash value, so if you decide to cancel several years later, you can get your premiums back minus and benefits used.

Because it is also an annuity it has a death benefit equal to at least your premiums paid minus any distributions or benefits used. 

A common way to fund this policy is with a single premium (make one payment up front). It usually makes good financial sense to take an underperforming asset such as a maturing CD and using that asset to pay for the policy. Younger people (40s and 50s) can pay monthly or annually up to age 65 and spread out the premiums over those years without penalty. 

 Do You Have Assets To Protect?

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Your investments are hard at work and bringing you value. 

But what if you suddenly needed long term care? You might have to liquidate an asset, such a real estate. How long would it take to liquidate the asset? Would you be able to sell it at a favorable price? How much would you have to pay in taxes upon liquidation?

Here's the smartest thing you can do to protect your assets...

Take one underperforming asset and use the cash to pay for long term care insurance. If you're healthy and can qualify for life insurance, the Hybrid Life & Long Term Care Insurance policy will create a significant long term care benefit, while allowing your other assets to continue to work for you.

 

Having a designated asset to handle your long term care needs is a far more efficient way to go as opposed to having to sell investments or have the family figure out how to pay for your care.

 

Depending on your age and health, you can potentially take a $50,000 maturing CD and create a long term care insurance benefit for hundreds of thousands of dollars.  

Do you want to know how much long term care insurance you can get with your next maturing CD?

Request A Proposal Today!

We'll Be In Touch Soon.

Long-term care (LTC) insurance is coverage that pays for adult daycare,

home healthcare and nursing home costs for individuals age 65 or older or for someone who has a chronic or disabling condition that needs constant supervision.